If you haven`t sold BABA here, when i warned you about the additional American depositary share registration in the U.S. that was translated by Citigroup`s analysts as SoftBank Group intention to sell part of its stake. Softbank was a pre-initial public offering investor in BABA, owning 5.39 billion ordinary Alibaba shares, or a 24.8% stake.
Then you should know that Alibaba had the Lowest Growth on Record. Sales rose 9.7% in Q4, below the 40%-plus growth that was common. consumer spending slows and competition intensifies. Net income tumbled 74% to $3.2 billion.
And probably Softbank sells an important stake in it. I`m curious what is Charlie Munger`s conviction buy opinion on BABA now.
If you look at PE and Free cash flow. Baba is priced currently for 8% growth and the growth was much more incl record fine. Just because Bloomberg says that it should have 40% growth, doesn’t mean it will keep growing that way
TopgOptions
⋅
@chinmayamahapatra, yes, the P/E is low, but there are competitors now and there is a chance that Softbank will sell its shares.
chinmayamahapatra
⋅
@CryptoFundManager Softbank might as well not sell as they made nothing in Baba till date
Mendenmein-Capital
⋅
Only time can tell us if the rumors about softbank will turn out to be true. For now these are just rumors...
You mentioned a price target of 86$, we too think that the 70$ to 80$ range could be the end of this correction. We are excited that you mentioned charlie munger, at this point he has "tripled-down" on his investment.
@CryptoFundManager, What price targets do you have in mind? We think that alibaba could reach its previous ATH at 320$ in 1-2 years.
himeshpatel1981
⋅
85-90 by June (china market low then as well - us will be some time in 2025
CBIchiban
⋅
Thanks for sharing your TA and fundamental analysis, @CryptoFundManager. Would you go long at your mid-80s price target or would you be content shorting it?
TopgOptions
⋅
@CBIchiban, i would buy it in terms of P/E ratio. if somehow it gets lower than 10, because of a sell-off from Softbank for example, then it`s a buy. if i missed to sell the top or the downtrend, now i won`t do it close to a support line.
CBIchiban
⋅
@CryptoFundManager, it makes sense, yes. Thanks for the response. Am keeping an eye on it (got a little burned with the Ant IPO cancellation); I've been more comfortable trading the Chinese EVs these past months.